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A Minority View: Higher Minimum Wage

michael1819 Wrote: Feb 28, 2013 10:18 AM
Sure but let's look at all the failed industries since then. Pretty much all manufacturing ha left the country. We are down to three auto manufacturers. Appliances for the most part gone. The efficiency of the fast food industry is due to on time delivery and mass purchasing power. Prices have also risen along with wages. We love our fast foods so the demand works to the favor of business but the expected bounce during this recession as historically expected has not occurred. Next prices will bounce again.

In his State of the Union address, President Barack Obama proposed raising the minimum wage from $7.25 an hour to $9 an hour. That would be almost a 25 percent increase. Let's look at the president's proposal, but before doing so, let's ask some other economic questions.

Are people responsive to changes in price? For example, if the price of cars rose by 25 percent, would people purchase as many cars? Supposing housing prices rose by 25 percent, what would happen to sales? Those are big-ticket items, but what about smaller-priced items? If a supermarket raised its prices by 25 percent,...